S&P 500, Nasdaq close at fresh highs Tuesday as Apple pops more than 7%: Live updates

The S&P 500 and Nasdaq Composite closed at new record highs on Tuesday afternoon.

The broad market index added 0.27% to settle at 5,375.32, while the tech-heavy Nasdaq gained 0.88% to end at 17,343.55. On the other hand, the Dow Jones Industrial Average slipped 0.31%, closing at 38,747.42.

— Lisa Kailai Han

Shares of Paramount fell sharply in late afternoon trading after the proposed acquisition by Skydance appeared to fall apart.

National Amusements, the company run by Shari Redstone that is effectively the controlling shareholder of Paramount, failed to reach a deal with Skydance for the entertainment company and has stopped discussions on the matter, sources told CNBC's David Faber.

Shares of Paramount were down 9% shortly before the closing bell.

— Jesse Pound

A near-term dip in risk assets could open the door for an attractive re-entry point, according to HSBC.

Strategist Duncan Toms predicted a near-term rates-driven dip in risk assets. But as the primary driver for risk asset valuations remains rates volatility, he expects any near-term selloff to be temporary.

"As much as there is some hawkish risk around the Fed, rates vol is very unlikely to spike to levels from last year, let alone from 2022. So we'd expect any weakness in risk assets to be both short-lived and shallow, and we think this presents a pretty good tactical (re-)entry point into risk assets," he wrote.

— Lisa Kailai Han

As megacap technology stocks remain at the forefront of the market, their strength could be tested as market breadth slips, according to BTIG.

"Mega-cap tech remains the bright spot, but we suspect that will ultimately succumb to the weak breadth," BTIG chief market technician Jonathan Krinsky wrote on Tuesday.

[W]hile we may expect a quiet day, thus far it appears that risk is being taken down as 89% of NYSE volume is in declining stocks," he added. "We know about the breadth divergences, so if the marquee names falter, that's when the indices run into trouble."

— Brian Evans

Traders have a "can't lose" mindset that should remain in place given hopes of a sweetened economic outlook and forthcoming cuts to interest rates, according to Wolfe Research.

"With major U.S. equity market indices rising over the last week and the S&P 500 hitting a new all-time high yesterday, stocks have seemingly shrugged off a variety of crosscurrents as of late," chief investment strategist Chris Senyek told clients in a Tuesday note.

"Our sense is, despite mixed signals coming from technical indicators, economic data, inflation and global central banks, markets remain biased to the upside," he added. And "investors' "can't lose" attitude will persist for the foreseeable future on the belief that either the economic outlook is going to improve, and/or the Fed will cut."

— Alex Harring

Wolfe Research initiated Madrigal Pharmaceuticals at an outperform Tuesday, calling its liver disease therapy Rezdiffra the "Biggest 2024 Launch in Biotech."

That's high praise for a stock that's seen its share of volatility. Investors have debated the drug's outlook, and fretted over whether GLP-1 weight loss drugs might reduce the need for treatments for metabolic dysfunction-associated steatohepatitis, or MASH. On Tuesday, the company's fans were winning the argument, with shares up 10%.

Wolfe analyst Andy Chen said he's not worried about competition because Madrigal has a big headstart and its treatment improves fibrosis — something GLP-1s cannot do. Chen also likes that CEO Bill Sibold has solid experience commercializing drugs, and the analyst added that the diagnosis rate for MASH is rising.

"Empirically, we have seen a doubling of diagnosis rate between 2010-2016 in MASH," he wrote in research note. Chen expects shares could rise to $382, or about 50% upside from Monday's close.

— Christina Cheddar Berk

Corporate stock buybacks are up sharply year over year and accelerated last week, Bank of America strategist Jill Carey Hall said in a note to clients Tuesday.

"Corp. client buybacks last week were the second-largest in our weekly history since '10, and have been tracking above typical seasonal levels for 13 weeks. YTD, corp. client buybacks as a % of S&P 500 mkt. cap (0.44%) are above '23 YTD highs (0.34%) at this time," the note said.

Buybacks from Bank of America clients aren't necessarily representative of the market as a whole, but they tend to be a leading indicator of S&P 500 buyback trends, according to the note.

— Jesse Pound

Tesla shareholders will vote Thursday on CEO Elon Musk's $56 billion pay package, the outcome of which is expected to move the electric vehicle maker's stock.

"We expect the proposal to pass despite noise from select shareholders and advisors," Ben Kallo, senior research analyst at Baird, told clients in a note Tuesday.

The proxy advisors Institutional Shareholder Services and Glass Lewis have recommended that shareholders vote against the pay package. Tesla's ownership is 45% institutional, 42% retail, and 13% insiders, according to Baird.

"If the proposal is rejected, we expect shares to trade down," Kallo wrote. Nevertheless, the package should overcome opposition given Tesla's board and several large shareholders have publicly advocated for it, the analyst said. Shareholder approval would be an important step for Tesla's stock, Kallo said.

But Bernstein analyst Toni Sacconaghi said investors are underestimating the likelihood that the packaged will be rejected.

The shareholder meeting begins at 4:30 p.m. ET Thursday.

— Spencer Kimball

Here are the stocks on the move midday:

Affirm Holdings – The stock popped nearly 7% following the announcement that its buy now, pay later loans will be embedded into Apple Pay as an option for purchases. U.S. Apple Pay users on iPhones and iPads will be able to use the option later this year, the company said in a filing.

General Motors – The automaker's stock added about 2% after announcing a $6 billion share repurchase program. GM also cut its 2024 EV sales forecast due to slow adoption. It plans to produce between 200,000 and 250,000 EVs this year, down from a prior range of 200,000 to 300,000.

Apple – The stock jumped around 6% one day after the iPhone maker announced its artificial intelligence strategy at its Worldwide Developers Conference. Along with other updates, Siri will be harnessing ChatGPT through Apple's partnership with OpenAI.

Read the full list here.

— Sean Conlon

Crude oil futures are holding firm after rallying more than 2% on Monday, with the two benchmarks having largely recovered from last week's losses.

U.S. oil and global benchmark Brent hit four-month lows last week after several OPEC+ members said they would start rolling barrels back on the market in October. Oil market analyst have largely described the sell off as an overreaction, given that supplies will remain relatively tight through the third quarter.

The recovery this week may be traders buying the dip, analyst John Evans with oil broker PVM said. OPEC, meanwhile, has held firm to its robust projections for oil demand and economic growth for this year.

— Spencer Kimball

Even after Apple's sweeping AI announcements, Google remains one of Evercore ISI's favorite AI picks of the Big Tech stack.

Analyst Mark Mahaney said he became more constructive on Google's "competitive position" in core search and generative AI search after running a 1,000-respondent U.S. proprietary survey, which ran ahead of Apple's WWDC event on Monday and asked about consumers' generative AI search adoption and usage. Mahaney's bullish sentiment stems from the survey's findings that suggest Google's market share in core search remains very strong even among Gen Z users, despite the rise of social media usage, he said. When it comes to generative AI search, the survey found that Google comes second to ChatGPT, however.

Mahaney reiterated his outperform rating on Google and raised his price target to $225, which implies about 28.6% upside from its latest close. Google remains one of the firm's top picks in large-cap tech and internet.

"Google's competitive position is as strong as ever. And Google may well have "the" killer product cycle on its hands today! And killer product cycles can sometimes translate into killer stocks," Mahaney wrote in a Monday note. "We believe this product cycle could materially improve the revenue growth potential of GOOG's largest business segment, leading to more sustained double-digit topline growth and 25%+ earnings power for the next several years."

— Pia Singh

Tuesday's Nasdaq Composite sell-off picked up steam during midday trading as investors seemed to take profits in chipmaker Nvidia and rotate into Apple, which has garnered enthusiasm from the market after unveiling new AI features that analysts believe could lead to a long-awaited iPhone upgrade cycle.

Apple jumped 5.8% as Nvidia dipped about 2%. The tech-heavy Nasdaq was just under flat.

— Pia Singh

A disappointing first quarter report from Academy Sports and Outdoors has sparked a sell-off and a downgrade from Bank of America.

The company reported $1.08 in adjusted earnings per share on $1.36 billion of revenue. Analysts were expecting $1.21 in earnings per share on $1.38 billion of revenue, according to FactSet. Comparable sales fell more than expected.

Academy did actually hike its full-year earnings guidance despite the miss, but it wasn't enough to reassure investors. The stock was down more than 7% in midday trading.

Bank of America analyst Robert Ohmes downgraded the stock to neutral from buy and also cut earnings estimates, citing the "risk of further earnings misses in the balance of the year."

— Jesse Pound

Apple shares bounced off Monday's dip, rallying more than 6% to a record high on Tuesday. The moves come as traders continue analyzing the announcements out of Monday's developer conference, which included a push into artificial intelligence.

— Alex Harring

14 stocks in the S&P 500 index hit new 52-week highs during Tuesday's trading session.

Of these stocks, 11 names reached new all-time highs. Tickers that hit this milestone included:

• Costco
• Eli Lilly
• Apple
• Applied Materials
• Broadcom
• Motorola Solutions

On the other hand, four stocks in the 500-stock index hit new 52-week lows. These included Brown-Forman, Molson Coors, MarketAxess Holdings and Paycom.

— Lisa Kailai Han

Confidence among small business leaders hit its highest level of the year in May even though owners still worry about inflation and plan to keep raising prices, according to a National Federation of Independent Business survey released Tuesday.

The Small Business Optimism Index hit 90.5 for the month, a 0.8-point increase from April and slightly above the Dow Jones estimate for 89.9. A net 15% of firms said they expect to hire, also the highest level of the year. A net 28% said they expect to raise prices, up 2 percentage points monthly, while 6% listed financing as their top problem, the most since June 2010.

The index registered its 29th consecutive month of running below its long-run average of 98. Also, the NFIB Uncertainty Index hit its highest level since November 2020.

— Jeff Cox

Shares of Affirm rose more than 5% following the announcement that its buy now, pay later loans will be incorporated into Apple Pay on iPhones and iPads for U.S. users.

Affirm said in a filing that the buy now, pay later option is expected to arrive later this year. 

Apple shares also rose after the news, hitting around 3.5%.

– Sean Conlon

All three major stock averages opened lower on Tuesday morning.

The S&P 500 slipped 0.3%, while the Nasdaq Composite lost 0.2%. The Dow Jones Industrial Average fell 219 points, or 0.6%.

— Lisa Kailai Han

General Motors shares gained 1.7% before the bell after the company's board approved a $6 billion stock repurchase program.

The announcement comes as an accelerated $10 billion buyback announced in November readies for completion at the end of the month.

— Samantha Subin

These are the stocks making the most significant moves before the bell:

• Eli Lilly — Eli Lilly shares rose 2% after a panel of FDA advisors recommended the approval of its Alzheimer's drug known as donanemab.
• General Motors — The automaker's stock added more than 1% after its board authorized a $6 billion stock buyback program.
• Shopify — The e-commerce stock rose about 1% after JPMorgan initiated coverage with an overweight rating.

Read the full list of stocks here.

— Samantha Subin

Barclays believes that equities have room to rise if the current market rally broadens.

"The April selloff reset crowded longs, and stocks are on better fundamental footing after 1Q24 earnings, in our view," the bank wrote in a recent note. "Against this backdrop, we think equities are likely to keep grinding higher."

Meanwhile, the overweight to technology assets has reached record levels, strategist Venu Krishna added.

— Lisa Kailai Han

Shares of Eli Lilly were up 3% after advisors to the Food and Drug Administration recommended the company's Alzheimer's drug donanemab, clearing the way for full approval later this year. The FDA tends to follow the advisory panel's recommendation but is not required to do so.

— Fred Imbert

Tesla CEO Elon Musk on Monday threatened to ban Apple devices from his companies after the iPhone maker said it struck a deal with OpenAI.

"If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation," Musk said in a post on X.

Apple told CNBC that the company is using its own AI, adding that its integration with OpenAI is an optional feature.

Apple shares were down slightly in the premarket. Tesla's stock was flat.

— Fred Imbert, Ashley Capoot

The S&P 500 is still more than 12% above its 200-day moving average, and it is a spot the index historically can't stay above for long, according to BTIG.

This figure calculates the S&P 500's average close over the past 200 sessions. The broad index trading above that level generally means it is considered to be in an uptrend.

Since it is currently so far above the 200-day average, the S&P 500 could theoretically pull back without breaking below this key level. The S&P 500 rose to a fresh record close on Monday, bringing its year-to-date gain up to 12.4%.

"This isn't a sell signal by itself, but historically it doesn't spend much time above this threshold," chief market technician Jonathan Krinsky told clients. "We remain tactically cautious here, while finding opportunistic single-name ideas."

— Alex Harring

Information technology stock DXC Technology climbed nearly 4% in extended trading after Reuters reported a joint bid from Apollo Global and Kyndryl Holdings.

The businesses have reportedly talked about offering between $22 and $25 per share for DXC, according to Reuters. Apollo shares were little changed after hours, while Kyndryl slipped more than 1%.

— Alex Harring

Stock futures were near flat shortly after 6 p.m. ET.

Dow futures slipped nearly 0.1%. S&P 500 and Nasdaq 100 futures traded just marginally below their flatlines.

— Alex Harring